Expensive dollar cuts short foreign trips

Barely a month and a half ahead of Durga Puja - a season when Bengalis traditionally love to holiday - there are no takers yet for trips to the US and Europe.

TNN | Aug 21, 2013, 02.21 AM IST

KOLKATA: Barely a month and a half ahead of Durga Puja - a season when Bengalis traditionally love to holiday - there are no takers yet for trips to the US and Europe. Even destinations in Southeast Asia, which has emerged as a favourite spot in recent years, are becoming out of bounds. Tumbling rupee has apparently shackled Bengalis' itchy feet.

Businessman Raj Metharamani, who holidays abroad every Puja with wife and sons, has given up hope of doing so this year. "The weakening of the rupee has made holidaying aboard extremely expensive. Last year, I spent $1,500 for a three-day trip to Thailand. This year, that will cost me $2,500! Let me see if we can holiday somewhere in India this October," Metharamani said.

Engineer Anjan Basu, too, shelved his plans to holiday in Europe. Having travelled extensively in Southeast Asia, he was looking forward to the Europe trip. But hopes of a Roman holiday went up in smoke when the exchange rate for Euro crossed Rs 80. "I guess, we may return to Singapore this year," he said.

According to Yatra.com, the rupee devaluation has hammered international leisure travel with hardly any enquiries this year. While 65-70% business is generated from corporates, it has dipped sharply as companies have switched to online conferences to cut out travel costs. Now with the leisure travel too cutting a sorry figure, the travel trade industry will take a big hit this year," an official said.

In fact, several travel agents are already counting huge losses as group tickets blocked on flights to Europe and the US may have no takers. While airlines block seats by paying carriers 25% in advance by August 15, they need to pay the full amount and furnish names by September 15 or risk forfeiting the advance amount. "The way things are going, it does not look to bright this year," a travel agent said.

According to Travel Agents Federation of India chairman (east) Anil Punjabi, even those who are venturing abroad are downgrading their hotels and crunching the number of days to keep runaway costs in check. "A switch from 4-star to 2-star or basic accommodation leads to a 20% cost saving. Also, reducing the holiday period from 7-8 days to 3-4 will lead to a 50% saving," said Punjabi.

While 5,000 persons travel out of Kolkata to Europe, US or Canada every month, the figure sees a 15-18% spike to touch 5,750-5,900 in the festive month. But this year, travel agents fear a 25% drop during Pujas. "I will be surprised if we have more than 4,000 West-bound travellers this October," said Punjabi.

International tour operators Thomas Cook, SOTC and Cox & Kings will have to churn out innovative packages to woo travellers. Thomas Cook managing director Madhavan Menon said the depreciating rupee had brought India into the spotlight like never before. "Our domestic team is looking forward to leveraging this potential. Anticipating price sensitivity in a sluggish economy, we were quick to launch value and short haul destinations with significant savings," he said.

Aug 2010 Aug 2013

US $4564

Euro 5885

Pound £69100

Singapore S$3652

Baht 1.702.16

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